Course Model Sept 21

September-21-09
12:52 PM

Stakeholders
Definition
The business/stakeholder relationship
Mutual dependency
Legitimate expectations
Consequences of not meeting expectations
Management`s primary objective
The external business environment
Characteristics
The internal business environment
Four key areas
The process of management
Tasks of any manager

The economic environment: Canadian capital markets

Definition: capital markets
Users of capital
Suppliers of capital
Financial intermediaries: definition
Securities: definition
Internal vs. external financing
Overview of the Canadian financial system

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Course Model
September-21-09
1:37 PM

The economic environment: Canadian Capital

Markets
Definition: capital markets
Users of capital
Suppliers of capital
Financial intermediaries: definition
Securities: definition
Internal vs. External financing
Overview of the Canadian financial system

Investments: definition
Why invest?
Factors to consider before investing (lab manual p2)
Defining characteristics of any investment
Safety of principal (risk)
Income producing capacity: dividends/interest
Growth (capital gains)
The fallacy of a "perfect investment"
Different people/different investments
Liquidity of an investment
Diversification of an investment portfolio
What is diversification?
Ways to diversify
Taxation of investment returns

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Course Model
September-23-09
12:54 PM

The canadian tax system

Personal tax system vs. Corporate tax system
Personal tax rate 2009
Federal rates
Ontario provincial rates
The ontario surtax
Calculating total tax payable: an example
Taxation of investment returns
Marginal tax rate: definition
Determining an investor's marginal tax rate
Types of investment returns
Taxation of interest and example
Taxation of dividends and example
Taxation of capital gains and example
Effective tax rate calculations
Before and after tax rates of return
Interest vs. Dividends vs. Capital gains: tax summary
Which offers the best after tax returns?

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Course Model
September-30-09
12:52 PM

Types of investments: Bonds (p 277-318 LM)

Definition
Characteristics of all bonds
Face value
Length of life/date of final maturity
Coupon rate
The bond indenture
Bond trustee
Order of liquidation
Types of bonds
Secured bonds
Unsecured bonds (debentures)
Reading bond quotations in the financial press
Calculating rough bond yields: examples

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Course Model
October-05-09
1:00 PM

Bond price movements

Vary inversely with interest rates
Why?
Example problems to demonstrate
Features possessed by some bonds
The call
Conversion
Extendible and retractable feature

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Course Model
October-07-09
12:56 PM

Alternative types of investments : preferred shares

Fixed rate of dividend
Payment of dividends is discretionary
Non-voting shares
Preference rights vs. Common shares
Liquidation rights
Dividend rights
Characteristics possessed by some preferred shares
Cumulative feature
Participating feature
Voting feature
Call (redemption) feature
Convertible feature

Common stock
Characteristics of common shares
Voting rights
No fixed rate of dividend
Dividends are variable and discretionary
Liquidation rights
How are common share prices determined?

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Course Model
Wednesday, October 14, 2009
12:55 PM

Stock market transactions (slides on website)

Bid and ask price system
Market orders to buy and sell shares
Short sales
What is short sale?
A step by step example of a short sale
Risks associated with short selling
No theoretical limit to losses
Termination of short selling agreements
Short seller is liable for dividends
Short calls
Short selling rule
Margin buying
What is it?
Implications of buying stock on margin
Margin calls
Margin buying rule
Example of margin call

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Course Model
Monday, October 19, 2009
1:00 PM

Stock options (puts and calls)

What is an option?
Four characteristics of any option contract
Reading option information in the newspaper
Call option : a step by step example
Put option
Factors affecting option prices
Intrinsic value
Time value

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Course Model
Wednesday, October 21, 2009
12:57 PM

Mutual funds
What is a mutual fund
Characteristics of mutual funds
Open ended
Investors have right of redemption
Valuation of shares in a mutual fund
Pros of investing in Mutual funds
Cons of investing in mutual funds

Course Model Page 9